Wednesday, 10 September 2014

Housing consensus

I love that both the left and right in New Zealand now agree that supply restrictions are the main cause of housing unaffordability.

At the 10:40 mark in panel discussion with Sean Plunkett, NZ Initiative's Oliver Hartwich points out that freeing up land supply would do more to stop speculative investment in housing than would Labour's proposed capital gains tax. Labour's Phil Twyford replies that Labour will direct Councils to increase the build rate, increase the supply of greenfields land, and liberalise restrictive planning laws.

Fix supply, and the demand-side pressures largely take care of themselves.